Credo Technology Group (NASDAQ:CRDO) Stock Price Up 9% - Here's Why

Key Points

• Credo Technology Group shares jumped 9% to $237.92, reaching an intraday high of $242.50, amid largely positive analyst coverage. The stock carries a consensus “Buy” rating and an average price target of $266.17.
• The company reported a strong quarterly performance, with EPS of $1.16 beating estimates by $0.14 and revenue of $437 million rising 157% year over year and exceeding expectations.
• Insiders have recently sold shares, including the CFO and CEO, with executives selling about $72.8 million of stock over the past quarter; institutional investors nonetheless own approximately 80.46% of the company.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) was up 9% during trading on Tuesday . The stock traded as high as $242.50 and last traded at $237.92. Approximately 6,752,995 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 7,595,987 shares. The stock had previously closed at $218.35.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on CRDO shares. Rosenblatt Securities boosted their price objective on shares of Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 2nd. Jefferies Financial Group lifted their target price on shares of Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Stifel Nicolaus increased their price target on Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a report on Monday, June 22nd. Wall Street Zen lowered Credo Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday. Finally, TD Cowen boosted their price objective on Credo Technology Group from $240.00 to $260.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $266.17.

Credo Technology Group Price Performance

The company has a market cap of $44.37 billion, a price-to-earnings ratio of 95.94, a P/E/G ratio of 0.95 and a beta of 3.23. The company's 50-day simple moving average is $236.60 and its 200-day simple moving average is $172.35.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its earnings results on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $1.02 by $0.14. The business had revenue of $437.00 million for the quarter, compared to analysts' expectations of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The business's revenue for the quarter was up 157.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.20 earnings per share. Equities analysts predict that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Daniel W. Fleming sold 40,000 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the completion of the sale, the chief financial officer directly owned 501,873 shares in the company, valued at $125,207,276.04. This trade represents a 7.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William Joseph Brennan sold 54,984 shares of Credo Technology Group stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $218.57, for a total value of $12,017,852.88. Following the sale, the chief executive officer directly owned 367,327 shares in the company, valued at approximately $80,286,662.39. The trade was a 13.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 302,162 shares of company stock worth $72,810,546 in the last quarter. 11.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credo Technology Group

A number of hedge funds have recently bought and sold shares of the business. Accel Wealth Management purchased a new stake in Credo Technology Group during the 2nd quarter worth approximately $383,000. Nolet Wealth Management LLC purchased a new position in shares of Credo Technology Group during the 2nd quarter valued at approximately $214,000. Generali Investments Management Co LLC purchased a new position in shares of Credo Technology Group during the 2nd quarter valued at approximately $695,000. Redhawk Wealth Advisors Inc. acquired a new stake in shares of Credo Technology Group during the second quarter worth approximately $243,000. Finally, Wealthcare Advisory Partners LLC grew its position in shares of Credo Technology Group by 3.0% during the second quarter. Wealthcare Advisory Partners LLC now owns 3,458 shares of the company's stock worth $940,000 after buying an additional 101 shares in the last quarter. Institutional investors and hedge funds own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group, Inc NASDAQ: CRDO is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo's product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.

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